YEAR..............PRICE IN CENTS

The first thing we will do is plot our data using excel into a scatter plot graph and take a look at our trends.......

Now let's try and develop a prediction function that will allow us to figure out the price of stamps in the future. There are a few that might come to mind when looking at the trend of our scatter points, I think you might agree that our points take on a linear look (especially from 1960-present), we can also see that a power function could fit our data, or maybe even an exponential function. We will take a look at all three of these possibilities and see which best fits our data and will allow us to predict future postage rates.

Let's begin by looking at a linear function for our graph.

Let's take a look at our exponential function.....

Now let's use our function to see when the price of a first class stamp will be $1.00.....

When we plug $1.00 into our equation we got above we get.....

**So it looks like our first class postage
stamp will reach $1.00 around October of 2027.**

Now to answer the question of when it will reach 64 cents, we will use our same exponential equation and plug in 64 cents...

**So according to our current trend in postage
increases the cost of a first class stamp will reach 64 cents
around June of 2016.**

We will now see if we can figure out when our next 3 cent increase will be for our first class stamp. If we plug in 44 cents into our equation we get..........